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London, (BUSINESS WIRE), Jan 20 2022: Kaleido Intelligence announces the findings of its global IoT connectivity survey, which saw over 230 MNOs, MVNOs and IoT service providers across the globe offer their views on the current market for cellular IoT connectivity.
The results are striking:
- Over 70% of MNOs and MVNOs view permanent roaming as a significant challenge.
- 48% of MNOs and MVNOs turn to IoT connectivity enablers to circumvent the cost and complexity surrounding bilateral roaming agreements.
- Less than 10% of IoT customers mandate eSIM for their projects due to costs.
- 56% of operators view high pricing for IoT as a major pain point.
- 90% of IoT service providers see integrations for IoT support as costly and time-consuming.
- 56% of MNOs and MVNOs perceive their current infrastructure as impacting IoT profitability.
Neither Roaming nor eSIM are Catch-all Solutions to Global IoT
The survey results highlight that simply relying on roaming partnerships to support global IoT operations is not feasible for most players in the connectivity market. Permanent roaming – where connected devices operate on a visited international network over a period longer than 90 days – is presently subject to intense scrutiny from both regulators and MNOs alike.
The survey found that 48% of MNOs and MVNOs turn to connectivity enablers to circumvent their limited market power and gain multi-network access through a single integration, often with permanent roaming agreements in place. These enablers, having negotiated wholesale connectivity deals operators around the globe, allow customers centralized access to multiple networks worldwide without the issue of having to negotiate with each player.
Tellingly, the survey revealed that eSIM does not meet requirements for large-scale IoT in its present state. Respondents reported that the technology is mandated by customers in less than 10% of cases, with over 80% of customers unwilling to opt for eSIM due to high deployment costs, or high costs involved when switching to a new provider.
Steffen Sorrell, Chief of Research at Kaleido Intelligence commented: “These results underline the need for a highly flexible solution to minimize complexity and maximize cost efficiency. In practice, this means combining the power of multi-network roaming agreements with over-the-air multi-IMSI capabilities; this can be combined with eSIM, if required, to ensure local compliance and a future-proof solution.”
56% of Operators see High Pricing as a Challenge in Supporting IoT
Pain points surrounding cost was a key theme among survey respondents: 56% of operators see high pricing as a challenge in supporting global IoT. Meanwhile, over 90% of IoT service providers state that integrations are both costly and time-consuming, with 36% of MNOs and MVNOs ranking this as their number one challenge in providing IoT connectivity services.
Due to the rapidly growing base of low-traffic, low ARPU connections, high costs mean an even greater squeeze on margins. 57% of MNO and MVNO survey respondents reported that Business Support Systems (BSS) are not always compatible with newer Low Power Wide Area Network (LPWAN) business models, while 56% reported that existing infrastructure impacts profitability.
Combined, integration costs and BSS upgrades are putting tremendous pressure on potential IoT connectivity profitability.
Addressing IoT Connectivity Pain Points
The survey results highlighted here, in addition to several others, will be discussed in an upcoming webinar on the 1st of February. Join Rony Cohen, co-founder and head of business development at floLIVE, and Steffen Sorrell, Chief of Research at Kaleido, as they showcase the survey findings and discuss how the industry can navigate around these challenges.
All participants will receive a complimentary copy of the survey report findings. There will also be a chance to get your questions answered during a live Q&A session during the webinar.
About Kaleido Intelligence
Kaleido Intelligence is a specialist consulting and market research firm with a proven track record delivering telecom research at the highest level. Kaleido Intelligence is the only research company addressing mobile roaming in its entirety, covering:
- Data Forecasts by Market
- Historical & Forecast Viewpoints
- Competitive Intelligence
- Strategic Insight
- Trend Analysis
Research is led by expert analysts, each with significant experience delivering telco research and insights that matter.